Frontline (FRO)
NYSE:FRO
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Frontline
(NYSE:FRO)
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Rating:79Outperform
Price Target:
$43.00
â–²(15.81% Upside)
Action:Reiterated
Date:05/23/26
FRO scores well due to strong earnings-call fundamentals (record profitability, high booked rates, and strong liquidity) and compelling valuation (low P/E with a solid dividend). Financial performance is solid but held back by cyclical earnings/FCF swings and leverage, while technicals show a positive—but not overheated—trend.
Positive Factors
Strong Liquidity & Extended Maturities
A near-$1bn liquidity buffer and an undrawn revolver, combined with no significant debt maturities until 2030, materially reduce near-term refinancing risk. This supports capex for newbuilds, dividend flexibility and ability to withstand freight-rate volatility over the next several quarters.
Negative Factors
High Spot Exposure
Heavy spot weighting (~70% VLCC days) makes earnings and free cash flow highly sensitive to tanker rate cycles. While advantageous in tight markets, this structural exposure can produce large earnings swings and depressed cash flow during rate contractions over multi‑quarter horizons.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Liquidity & Extended Maturities
A near-$1bn liquidity buffer and an undrawn revolver, combined with no significant debt maturities until 2030, materially reduce near-term refinancing risk. This supports capex for newbuilds, dividend flexibility and ability to withstand freight-rate volatility over the next several quarters.
Read all positive factors
Frontline Key Performance Indicators (KPIs)
Any
Spot Time Charter Equivalent By Carrier
Measures the revenue earned per day by each vessel type, providing insight into market conditions and operational efficiency. It highlights which carriers are generating the most income and how well the company is capitalizing on spot market opportunities.
Measures the revenue earned per day by each vessel type, providing insight into market conditions and operational efficiency. It highlights which carriers are generating the most income and how well the company is capitalizing on spot market opportunities.
Data provided by:
The Fly
The FlyFrontline (FRO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.26B
Dividend Yield4.32%
Average Volume (3M)2.76M
Price to Earnings (P/E)5.3
Beta (1Y)0.79
Revenue Growth18.51%
EPS Growth160.00%
CountryUS
Employees85
SectorEnergy
Sector Strength52
IndustryOil & Gas Midstream
Share Statistics
EPS (TTM)4.06
Shares Outstanding222,622,900
10 Day Avg. Volume2,681,268
30 Day Avg. Volume2,759,577
Financial Highlights & Ratios
PEG Ratio-0.54
Price to Book (P/B)1.93
Price to Sales (P/S)2.47
P/FCF Ratio7.25
Enterprise Value/Market Cap1.34
Enterprise Value/Revenue4.92
Enterprise Value/Gross Profit11.87
Enterprise Value/Ebitda9.14
Forecast
1Y Price Target
$36.80Price Target Upside-0.88% Downside
Rating ConsensusHold
Number of Analyst Covering3
EPS Forecast (FY)6.83
Revenue Forecast (FY)$2.13B
Frontline Business Overview & Revenue Model
Company Description
Frontline Ltd., a shipping company, engages in the seaborne transportation of crude oil and oil products worldwide. It owns and operates oil and product tankers. As of December 31, 2021, the company operated a fleet of 70 vessels. It is also invol...
How the Company Makes Money
Frontline primarily makes money by chartering its oil tankers to customers and earning freight revenue tied to the use of its vessels. Key revenue streams include (1) spot/market-based charters, where revenue is earned per voyage or per day at pre...
Frontline Earnings Call Summary
Earnings Call Date:May 22, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 31, 2026
Earnings Call Sentiment Positive
The call presents a strongly positive operational and financial picture: record profitability, high TCE rates, robust forward bookings, strong liquidity and substantial cash generation potential. These positives are tempered by clear geopolitical risk (Strait of Hormuz disruption), remaining high spot exposure (~70% of VLCC days), newbuilding commitments and some QoQ increases in operating and administrative costs (including a synthetic option loss). On balance, the favorable earnings, cash flow potential and balance sheet strength materially outweigh the risks highlighted.Positive Updates
Record Quarterly Profit
Reported profit of $559.0M ($2.51/share) and adjusted profit of $344.9M ($1.55/share) for Q1 2026; adjusted profit increased $114.5M quarter-over-quarter (≈+49.7%).
Negative Updates
Geopolitical Risk — Strait of Hormuz Disruption
Prolonged Strait of Hormuz closure and opaque Middle East political environment create material volatility and tail-risk. Management acknowledges possibility of both recovery (restocking/diversification) and adverse prolonged disruption scenarios.
Read all updates
Q1-2026 Updates
Positive
Negative
Record Quarterly Profit
Reported profit of $559.0M ($2.51/share) and adjusted profit of $344.9M ($1.55/share) for Q1 2026; adjusted profit increased $114.5M quarter-over-quarter (≈+49.7%).
Read all positive updates
Company Guidance
Frontline guided that Q1 2026 was the company's most profitable quarter since 2004 with VLCC/Suezmax/LR2 TCEs of $103,500/$72,400/$50,700 per day and, so far in Q2, 82% of VLCC days booked at $181,700, 79% of Suezmax days at $131,300 and 68% of LR2/Aframax days at $125,000; reported profit was $559m ($2.51/sh) and adjusted profit $344.9m ($1.55/sh) (adj profit +$114.5m q/q driven by time charter earnings up $112m to $536.5m). The company highlighted strong liquidity of $945m (including $473m undrawn revolver), no meaningful debt maturities until 2030, $925m remaining newbuilding commitments for 9 ships with up to $737m financing secured, a fleet of 33 VLCC/21 Suezmax/18 LR2 (avg age 7.5 yrs, 100% eco, 64% scrubber‑fitted), estimated cash breakevens ~ $24,300/day (VLCC & Suezmax) and $23,600/day (LR2) with a fleet average ≈ $24,100/day (≈ $23,000 excl drydock), Q1 OpEx incl drydock VLCC/Suezmax/LR2 $11,300/$9,100/$10,900 (fleet OpEx excl drydock $8,100/day), ~23,700 spot days next 12 months, 27,900 earnings days annually, and cash‑generation potential of ~$1.5bn (~$7/sh; 18% cash‑flow yield) rising to ~$2.1bn ($9.51/sh) at +30% spot or falling to ~$1.0bn ($4.41/sh) at −30%; management noted ~30% of VLCC voyage days are time‑chartered for the next 12 months to manage downside risk.Frontline Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
58
Neutral
Cash Flow
65
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.25B | 1.97B | 2.05B | 1.80B | 1.43B | 749.38M |
| Gross Profit | 933.72M | 644.05M | 705.68M | 776.11M | 484.33M | 27.23M |
| EBITDA | 1.21B | 921.14M | 1.14B | 1.07B | 739.83M | 211.34M |
| Net Income | 904.91M | 379.08M | 495.58M | 656.41M | 475.54M | -14.96M |
Balance Sheet | ||||||
| Total Assets | 5.67B | 5.75B | 6.22B | 5.88B | 4.78B | 4.12B |
| Cash, Cash Equivalents and Short-Term Investments | 471.67M | 253.41M | 417.56M | 315.75M | 490.81M | 115.51M |
| Total Debt | 2.63B | 3.07B | 3.75B | 3.46B | 2.37B | 2.37B |
| Total Liabilities | 2.82B | 3.24B | 3.88B | 3.61B | 2.51B | 2.46B |
| Stockholders Equity | 2.84B | 2.51B | 2.34B | 2.28B | 2.27B | 1.65B |
Cash Flow | ||||||
| Free Cash Flow | 591.92M | 669.93M | -178.84M | -775.24M | 52.93M | -399.47M |
| Operating Cash Flow | 927.03M | 682.46M | 736.41M | 856.18M | 370.89M | 62.93M |
| Investing Cash Flow | 531.22M | 24.98M | -483.40M | -1.24B | -239.47M | -363.06M |
| Financing Cash Flow | -1.42B | -869.62M | -147.80M | 433.07M | 10.03M | 223.55M |
Frontline Technical Analysis
Positive
37.13
Price Trends
35.62
Positive
32.14
Positive
26.94
Positive
Market Momentum
0.63
Positive
50.72
Neutral
58.09
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FRO, the sentiment is Positive. The current price of 37.13 is below the 20-day moving average (MA) of 37.48, above the 50-day MA of 35.62, and above the 200-day MA of 26.94, indicating a neutral trend. The MACD of 0.63 indicates Positive momentum. The RSI at 50.72 is Neutral, neither overbought nor oversold. The STOCH value of 58.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FRO.
Frontline Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
88 Outperform | $4.15B | 4.07 | 15.85% | 3.19% | -2.77% | 1.00% | |
85 Outperform | $4.13B | 3.15 | 27.13% | 6.12% | 14.50% | 69.57% | |
84 Outperform | $2.67B | 4.15 | 21.40% | 3.72% | -2.29% | 31.43% | |
79 Outperform | $8.26B | 5.33 | 15.91% | 4.32% | 18.51% | 160.00% | |
78 Outperform | $2.80B | 4.47 | 29.14% | 6.12% | 4.66% | 85.89% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
63 Neutral | $5.32B | 16.48 | 8.36% | 2.68% | 81.68% | 5160.46% |
* Energy Sector Average
FRO
Frontline
37.12
19.94
116.08%
DHT
DHT Holdings
17.38
6.76
63.61%
GLNG
Golar LNG
52.36
15.51
42.08%
STNG
Scorpio Tankers
80.21
41.40
106.69%
TNK
Teekay Tankers
77.21
33.25
75.64%
INSW
International Seaways
83.52
49.03
142.16%
Frontline Corporate Events
Frontline Files 2025 Annual Report and Confirms Boardroom Changes
Mar 30, 2026
Frontline plc, a Cyprus-headquartered tanker operator specializing in crude and product carriers, has published its 2025 annual report, detailing audited consolidated and parent company financial statements, governance disclosures and an independe...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.